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Recently a new cause of action referred to as "creditor fraud" has appeared in cases where an attorney has advised and facilitated a debtor to fraudulently convey property and/or hide assets to delay, hinder and avoid creditors.
Is there a need for a new cause of action? Or does the term creditor fraud refer to a variety of traditional causes of action?
On June 27, 2005, the Supreme Court of New Jersey, in a 7-0 decision in Banco Popular North America v. Gandhi, written by Justice Long, held among other points that: The alleged cause of action called "creditor fraud," does not exist under New Jersey law; abrogating the holdings of two recent Appellate ...